According to estimates put forth by The Senior Citizens League, the cost of living adjustment for next year is likely to be 1.3 %, which the group characterized as “extremely low.”
Benefits increased by 1.6 % in 2020, 2.8% in 2019, 2% in 2018, 0.3 percent in 2017 and 0% in 2016.
According to The Senior Citizens League, benefits have lost 30% of their purchasing power since the year 2000.
Current inflation is about 1/2 of 1% which is extremely low but is project to increase to over 2% in 2021 which is still low but much higher than the current rate. Inflation rates of 3% are needed for sustained economic growth... but were right around 2% from 2016 until 2019 when we experienced substantial economic growth.... which is not typical but welcomed.
Those of us who are retired, SHOULD HAVE more than just Social Security to pay for our retirement expenses, relying on savings, 401K's, and possibly other retirement programs based upon the number of years worked. Unfortunately, many American companies no longer provide retirement programs for their employees outside of a 401K to which they may or may not contribute.
THEREFORE, it is up to US to plan and prepare for our retirement, not relying on Social Security or our Employers. And, therein lies the problem...
MOST AMERICANS don't save for the unexpected or for their retirement and have stockpiles of debt with which they must contend before any savings plan is realized.
Does this mean Americans should get paid higher wages?
NO... certainly not...
WHY?
With higher wages, Americans would simply spend more and go deeper into debt which would grow the economy but hurt them financially individually.
- Americans need to learn to live within their needs
- Americans need to learn to pay off their debt as quick as possible
- Americans need to learn to save for their future and for retirement
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